November 22, 2020

1040 Instructions 2020

1040 Instructions 2020 hello this is going to be a screencast taking you through how to fill out a 1040 for Jane a doe this is the one that we did together in class that I used to take you through using.

A w-2 for. The taxpayer Jane a doe and how she would file her taxes using the 1040 so if you take a look here I'm just gonna open it, right from Google classroom first we have our w-2 here the w2 is the record of. Your earnings from the previous year so for an example we're gonna be doing the 2018 1040 so this would be the 1040 that you. Would file so this would be your earnings from 2018 that you would file in the beginning of 2019 so I'm just going to go ahead and. Download this file and then also what you all are going to be doing is you're going to be completing the, 1040 on paper I'm going to have you all complete I'm going to complete excuse me, with you all using the PDF so let me go ahead and open that as well just for ease of being able to see it on. The screen as, you all are doing it on paper all right so a couple things to remember about this taxpayer. From the information provided on her w-2 as well as to add information that we have about her so one thing we're gonna remember is that she. Is not married and she has no children no one can claim her as a dependent her occupation is that she is a. College professor there's a phone number listed there we also want to keep in mind that there, is no third party designee on this tax return and that you prepare to yourself so the banking information is, also provided as needed and we will see if we need it what we need it for.

Now there's just a couple main pieces of information that we're going to be using from your w-2 today in class for the 1040 jane doe's information in terms of her address here, her social security number which is provided, in this box a her wages tips an other compensation which is provided in box number one to w-2 and her federal income tax withheld so let's go ahead. And take a look at this m40 and begin filling this out like we said she is single then we're gonna, put her name here the social security number it was one two three four five six seven eight, nine so they're gonna type that here okay she does not have a spouse this is not a joint return so we can skip all. Of that information there for here we are going to assume that Jane Doe has full-year health care. Coverage so we're going to check mark that there, is a tax penalty that you would have to pay if you cannot show proof of pull your health care coverage and you would have turned in what's called a 1095 to show that you have, little coverage okay so we're gonna go down to where it says home address and if we, look at the w-2 her home address is one two three on Street anywhere else Pennsylvania and here's a quote was two three. Four five six she has no dependents as we talked about also and so we can skip all, of this information here here would be where you assign your name I cannot exactly show you that. Because it will not let me type in this area to date and then if you remember, her occupation was that she was a. College professor so then we're going to flip the page or for me I'm going to scroll down and we're.

Going to take a look at this form so this looks way more intimidating than it is because for us a lot, of these numbers are not going to apply to us because of Jane's situation so we're just gonna start from the bottom sorry I start, from the top and move down so number one is asking for her wages salaries tips etc.

And this is where you also attach your forms w2 if you were going to be physically mailing in this form and we see that her wages tips and other. Compensation is 48,000 48,500 so we're going to put that as her amount that she made in 2018 we're also going to assume that.

She had no other income and.

That's what two a three a four a five a is looking for is any additional income that she has and she does not so we're going to, put zeros for all of these options here and then six asks us to. Put her total income so I told income is still as number one adding line one plus 2b plus 3b plus 4b plus. 5b which would equal that same 48,500 line seven asks for her adjusted gross income if you have no adjustments to. Income insert amount from line 6 otherwise to track Schedule one line 36. From line 6 so for us we're just going to repeat that number here line 8 is the standard deduction or itemized deductions if we look at this little box. That's off to the side we see that the standard deduction for someone that is single or married filing separately is 12,000 this. Is Jane's situation so our standard. Deduction is going to be $12,000 line 9 is qualified business income deduction C instructions we do not have this so for us it's going to be 0 line 10 is, taxable income it says to track lines, 8 & 9 from 7 if 0 or less enter 0 so we're going to subtract forty eight thousand five hundred minus twelve thousand not to be confused by the language being used and so that would equal. 36 thousand five hundred dollars, for us number eleven it would be the text so what we have to do now and this is just something that we're going to have to remember we're going to. Have to look up whatever is on line ten which is the 36500 on our text table so let's go over back, to google classroom and let's grab our text table from the posts here. So this is the 2018 tax table it's gonna open up in Adobe so we can see it just a little bit better and what this does is determines how. Much you should be taxed based on.

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